Comment on Housing market affordability is so bad that Zillow says it will take you 13.5 years to break even on a purchase from July onward
In the US a fixed rate does not expire. At the end the loan has been repaid. I do not know of they are in the US.
How does that work? You take a loan, negotiate a rate (say 3%) upfront, and you have this rate as long as the loan is not payed?
Yes, though I’m not sure what you mean by not paid. You have monthly payments for the loan.
I meant payed off.
So if I borrow $100.000 at 3% interest rate, I will 3% for the entire duration of the loan? Even if FED increased the rates to something else?
Yep. That’s why people who got these historic low rates are going to be very resistant to moving. Myself included.
uranibaba@lemmy.world 1 year ago
How does that work? You take a loan, negotiate a rate (say 3%) upfront, and you have this rate as long as the loan is not payed?
Alexstarfire@lemmy.world 1 year ago
Yes, though I’m not sure what you mean by not paid. You have monthly payments for the loan.
uranibaba@lemmy.world 1 year ago
I meant payed off.
So if I borrow $100.000 at 3% interest rate, I will 3% for the entire duration of the loan? Even if FED increased the rates to something else?
Alexstarfire@lemmy.world 1 year ago
Yep. That’s why people who got these historic low rates are going to be very resistant to moving. Myself included.